BellSouth workers could get severance deal

By SCOTT LEITH
The Atlanta Journal-Constitution
Published on: 03/07/06

BellSouth workers who lose their jobs in a buyout by AT&T could leave with tens of thousands of dollars in severance pay.

According to a document filed Tuesday by BellSouth with the Securities and Exchange Commission, the company plans to offer a severance plan that will be available for two years after AT&T buys the company. The plan provides for severance equal to 7 percent of base pay per year of service. Workers will get a minimum of 50 percent of their salary and a maximum of 150 percent.

That plan is more attractive than terms announced last year when BellSouth said it would cut 1,500 jobs. In that case, workers were offered 5 percent of base salary for each year of service, with a minimum buyout of only 5 percent.

BellSouth’s SEC filings also showed that pension plans for retirees will not change if AT&T gets approval to buy the company. Retiree benefits will stay the same until the sale closes but could change in the future.

AT&T expects to close on its acquisition of BellSouth within 12 months. The new company expects to shed about 10,000 jobs, with many likely to be lost in Atlanta.